Venezuela Earthquake Damage Estimated to Exceed $20 Billion

Venezuela is facing a major reconstruction process after the earthquakes that occurred on June 24. The World Bank announced that the earthquakes caused approximately $19.6 billion in direct physical damage. The report warned that if the country does not start a rapid reconstruction process, economic recovery may be delayed for years. The earthquakes affected not only buildings and infrastructure but also the country's economic activities and the daily lives of millions of people. The assessment prepared by the World Bank Group revealed the extent of the damage and indicated that the speed of the reconstruction process will directly determine the country's future. According to the Global Rapid Damage Estimation (GRADE) report, 47% of the total physical damage occurred in residential areas. 27% of the damage was in infrastructure, and 26% was in non-residential buildings. The regions most affected were La Guaira and Distrito Capital, which accounted for approximately half of the total damage. The report stated that if current public and private sector investments continue, reconstruction efforts may take over 10 years, which could have serious negative effects on economic activities.